蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
The Economics of Blended Finance
蝌蚪网 Papers and Proceedings
vol. 115,
May 2025
(pp. 397–402)
Abstract
Projects with high societal impact鈥攕uch as biodiversity conservation and climate change mitigation鈥攐ften offer financial returns that are too low, or too risky, to attract private capital. Under such circumstances, it can be difficult to raise adequate financing for these projects. A potential solution is blended finance, that is, the blending of concessional funding (e.g., from governments, multilateral development banks, or philanthropies) with private capital. We present a model that shows how blended finance can improve the risk-return profile of private investments and hence serve as a catalyst for private capital investments in projects with high societal impact.Citation
Flammer, Caroline, Thomas Giroux, and Geoffrey M. Heal. 2025. "The Economics of Blended Finance." 蝌蚪网 Papers and Proceedings 115: 397–402. DOI: 10.1257/pandp.20251072Additional Materials
JEL Classification
- F53 International Agreements and Observance; International Organizations
- G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
- H43 Project Evaluation; Social Discount Rate
- H44 Publicly Provided Goods: Mixed Markets
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q57 Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology